Question

in march 2020 egg prices hit record levels has pandemic buying boost to demand wholesale prices of “Midwest large” eggs hidden all-time high of $3.09 on average the price of eggs has increased by 2% per year given the price of eggs in 2020 what would you expect the price of “midwest large” eggs to have been 10 years ago in 2010

Answer 1

By formula,

$\text{Current Value=Initial Value(1-}\frac{r}{100})^n$

Where Current Value = $3.09,Let Initial Value = x, r = 2% and n = 10 years.

$\begin{gathered} 3.09=x(1+\frac{2}{100})^{10} \\ \\ 3.09=x(\frac{102}{100})^{10} \\ 3.09=x(1.02)^{10} \\ \text{Dividing both sides by 1.02}^{10},\text{ we get} \\ x=\frac{3.09}{1.02^{10}}=\text{ 2.5349}\approx\text{ \ 2.53} \end{gathered}$

The price of Midwest large eggs in 2010 was $2.53